The Crypto Sky is Not Falling (Yet)! 🚨

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🚨 The Crypto Sky is Not Falling (Yet)! 🚨

The Crypto Sky is Not Falling (Yet)! 🚨

Oh, the drama! The speculation! The hand-wringing! Bitcoin‘s (BTC) latest dump has market participants wringing their hands and wondering if the asset’s value will record a significant recovery or if we’re all doomed to walk the plank into a sea of red ink.

But fear not, dear friends, for market analytics firm Santiment has identified some on-chain indicators that can offer insight into bitcoin’s movement in the short term. And by “insight,” I mean a glimmer of hope that we might not all lose our shirts just yet.

“The Sky is Not Falling in Crypto” (But Maybe It’s Just a Really Long Drop?)

Since BTC hit an all-time high (ATH) of $109,000 the day before U.S. President Donald Trump’s inauguration in January (because, of course, politics), the cryptocurrency has been on a seven-week slump. But don’t worry, it’s not all bad news! Large BTC accumulation by whales and sharks continued until Trump’s inauguration in mid-January, but it began to slow down after the event and stopped in mid-February. Because, you know, politics.

But then, the sharks and whales started taking profit, and prices began to plummet. And then, high capital BTC wallets resumed accumulation on March 3, because even whales need a little pick-me-up now and then.

Despite the reaccumulation, the amount of BTC moving to exchanges has been high. Santiment found that a combined 22,702 BTC (approximately 0.11% of Bitcoin’s entire supply) moved from non-exchange wallets to exchange addresses between February 20 to March 8. Which, let’s be real, is a cause for concern because the primary purpose of moving coins to exchanges is often selling. But hey, at least the whales are trying to make us feel better!

An Incoming Bounce? (Please, For the Love of All Things Crypto, Yes!)

Examining social media content, mentions of BTC predictions related to lower prices ($50,000 to $69,000) are currently higher than mentions for prices ranging from $100,000 to $119,000. Which, if I’m being honest, is a good sign because the crypto market often moves in the opposite direction of the crowd’s expectations. So, let’s all just take a deep breath and hope that the crowd’s bearishness is just what we need to bounce back.

Another metric to consider is the average rate of gains or losses from short and long term traders. Bitcoin traders active in the last 30 days have lost 11%, while those active in the past 365 days are down 5%, suggesting that the market is not in historically negative zones yet. Yet.

“Don’t be surprised if there is a bit more pain in store first, though. It’s always darkest before the dawn,” the firm added. Because, you know, that’s just what we needed to hear. More pain. Joy.

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2025-03-12 01:53